How has impact capital flowed to the health industry over time?
Trend 1: Investments in healthcare have doubled over time.
In the early years (2014-2018), impact capital for healthcare was in the single digit, about 5-7% of AUMs. By 2025, this allocation doubled. The most recent report by GIIN showed that about 11% of AUMs were channeled to healthcare interventions.
Trend 2: Investment allocation is not that remarkable
At least compared to other sectors like finance or energy. Financial services have historically gained the largest share of capital, anywhere from 19-38%. In recent times, the energy sector has been the fastest-growing in terms of AUM allocation, from 19% pre-covid to roughly 21% in 2025.
Trend 3: Commitments to SDG 3 have declined
This is the most worrisome. According to a survey by GIIN, the proportion of investors allocating AUMs to good health and wellbeing has declined from 62% in 2019 to 48% in 2024.
Curious about the factors driving this trend.
My guess is that the inherent market failure in health markets deters investors from putting more skin in the game. We see this a lot in the VC space.
Or perhaps investors interpret health beyond SDG 3? After all, almost all of the SDGs are prime examples of economic/wider determinants of health.
